Algae Biofuel Market Report 2025

The algae biofuel market size has grown strongly in recent years. It will grow from $8.55 billion in 2024 to $9.3 billion in 2025 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to growing awareness of climate change, concerns over energy independence, fluctuations in global oil prices, growing interest from venture capitalists, and increased public awareness of environmental issues.

The algae biofuel market size is expected to see strong growth in the next few years. It will grow to $13.02 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to corporate sustainability initiatives, rising demand for aviation and marine biofuels, investments in research and development, collaborations between biotechnology firms, anticipated regulations favoring renewable fuels. Major trends in the forecast period include commercial-scale production, integration of algae biofuel production within circular economy frameworks, increased collaborations between biotechnology firms, entry of new startups and companies, growing demand for sustainable aviation fuels (SAF).

The forecast of 8.8% growth over the next five years reflects a modest reduction of 0.6% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through reduced availability of specialized cultivation equipment from China and Israel, hindering scalability and research and development progress in alternative fuel development. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing demand for renewable energy sources is poised to drive the expansion of the algae biofuel market in the coming years. Renewable energy encompasses clean energy derived from natural sources or processes that replenish themselves continuously. The rising demand for renewable energy sources stems from heightened awareness of climate change, decreasing costs associated with renewable energy technologies, and a growing societal endorsement of sustainable practices. Algae biofuel presents a sustainable substitute for fossil fuels by harnessing photosynthesis to convert CO2 into energy-dense compounds, potentially curbing greenhouse gas emissions and lessening dependence on finite resources. Its scalability, adaptability, and potential for carbon neutrality position it as a promising element within the renewable energy spectrum. For instance, in January 2024, according to Eurostat, the share of renewable energy in the EU's energy consumption rose to 23% in 2022 from 21.9% in 2021. Hence, the escalating demand for renewable energy sources propels the advancement of the algae biofuel market.

Leading companies in the algae biofuel market are adopting strategic partnerships to enhance technology integration and broaden their market presence. A strategic partnership generally refers to a collaborative arrangement between two or more organizations that combine their resources, expertise, and efforts to achieve shared objectives. For example, in March 2022, AECOM, a US-based architecture and engineering firm, joined forces with Genifuel Corporation, a US company specializing in converting organic waste into renewable energy, to transform wild algae and wastewater biosolids into sustainable aviation fuel (SAF) and biogas. This partnership utilizes AECOM’s patent-pending algae harvesting technology alongside Genifuel’s hydrothermal processing (HTP) method to convert these materials into renewable oil and gas. The initiative also tackles the environmental challenges of harmful algal blooms (HABs) caused by nutrient pollution, which threaten both human health and aquatic ecosystems.

In February 2022, ExxonMobil Corporation forged a partnership with Viridos Inc. for algae biofuel research. The collaboration aims to advance sustainable algae biofuel technology toward commercial deployment, potentially enabling substantial reductions in greenhouse gas emissions within the heavy transportation sector. Viridos Inc. is a biotechnology firm based in the United States that specializes in developing renewable algae-based biofuels and transformative solutions.

Major companies operating in the algae biofuel market report are Neste Inc; Alfa-Laval AB; Pond Technologies Inc.; Intertek Group plc; EPCM Holdings; PetroTech Holdings Corp.; Synthetic Genomics Inc.; Joule Unlimited Inc.; Reliance Life Sciences Pvt. Ltd.; Algenol Biotech LLC; Heliae Development LLC; Solazyme Inc.; Aurora Biofuels Inc.; AlgaEnergy N.A. Inc.; Sapphire Energy Inc.; Algae Systems LLC; Inventure Renewables Inc.; Genifuels Corporation; Culture BioSystems Inc.; Solix Biofuels Inc.; HutanBio Limited; GreenFuel Technologies Corporation; Cellana Inc.; Manta Biofuel Inc.

North America was the largest region in the algae biofuel market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the algae biofuel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the algae biofuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The algae biofuel market consists of sales of liquid biofuels, solid biofuels, and chemical feedstocks. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are heavily impacting the oil and gas industry, especially in areas such as exploration equipment, pipeline development, and refining operations. Increased import duties on drilling rigs, steel pipes, and specialized machinery have significantly raised capital expenditures across both upstream and downstream segments. Midstream players are grappling with cost surges for essential components like valves, compressors, and storage tanks, causing delays and disruptions in expansion projects. Refiners, meanwhile, are contending with higher expenses for imported catalysts and control systems critical to operational efficiency. In addition, retaliatory tariffs from major trade partners have curtailed U.S. exports of liquefied natural gas (LNG) and crude oil, reducing global competitiveness. In response, companies are ramping up investments in domestic manufacturing alliances, digital asset management tools, and diversified energy portfolios to maintain resilience and protect profitability.

Algae biofuel denotes a renewable energy source derived from algae through processes encompassing cultivation, harvesting, and conversion. Algae possess the capacity to accumulate oils or lipids that can subsequently be extracted and refined into biofuels. This alternative energy source presents a viable substitute for traditional fossil fuels due to algae's rapid and prolific growth in diverse environmental conditions, offering a potential avenue for sustainable energy production while mitigating greenhouse gas emissions.

The primary categories of algae biofuel comprise bioethanol, methane, biodiesel, green diesel, jet fuel, biogasoline, biobutanol, and other variants. Bioethanol, a type of alcohol, is derived from cellulose-rich plants such as sugar cane, sugar beet, or certain grains like corn. Algae biofuel production involves harvesting and cultivation techniques and finds application across various sectors including aerospace, aviation, transportation, and others.

The algae biofuel market research report is one of a series of new reports that provides algae biofuel market statistics, including algae biofuel industry global market size, regional shares, competitors with a algae biofuel market share, detailed algae biofuel market segments, market trends and opportunities, and any further data you may need to thrive in the algae biofuel industry. This algae biofuel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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